National trends favor growing S.C. aerospace industry

The economic impact of South Carolina’s aerospace industry has grown 9 percent in the past two years, and the future appears bright.

The S.C. Council on Competitiveness recently reported that the state’s aerospace cluster produces an annual economic impact of $19 billion. The biggest companies in the industry (500-plus employees) expect to grow their workforce by 31 percent by the end of 2017.

A 2014 report by the council estimated the cluster’s impact at $17.4 billion and supporting 17,114 private-sector jobs.

Average total annual compensation for private sector aerospace employees was valued at $70,000, compared to the manufacturing industry average of $53,350 and overall state average of $41,338.

Meanwhile a consultant’s report by The Austin Co. for Area Development magazine points to three major economic development announcements in the Southeast as proving the aerospace industry has a healthy future in the region: Airbus in Alabama, Boeing in South Carolina and Northrop Grumman in Florida.

“Appealing to manufacturers and their suppliers for its proximity to ports and highways and less expensive available labor with relatable automotive industry experience, the Southeast has been showing increased value of shipments and capital expenditures,” the report states.

Such announcements could be signaling “a strategic shift in resources under way – one that forecasts a further diversification of industry leaders and their suppliers,” according to the report.

The report cites research that estimates air traffic will grow by 4.7 percent per year between now and 2033.